Federal Register, Volume 80 Issue 4 (Wednesday, January 7, 2015)

[Federal Register Volume 80, Number 4 (Wednesday, January 7, 2015)]
[Notices]
[Pages 908-909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30975]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73971; File No. SR-CTA-2014-04]


Consolidated Tape Association; Notice of Filing of the Nineteenth 
Substantive Amendment to the Second Restatement of the CTA Plan

December 31, 2014.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on December 24, 2014, the Consolidated Tape Association (``CTA'') Plan 
participants (``Participants'') \3\ filed with the Securities and 
Exchange Commission (``Commission'') a proposal to amend the Second 
Restatement of the CTA Plan (the ``CTA Plan'').\4\ The amendment 
proposes to shorten the maximum time within which Participants must 
report trades from 90 seconds to 10 seconds, subject to the 
Participants' obligation to report trades as soon as practicable. The 
Commission is publishing this notice to solicit comments from 
interested persons on the proposed amendment.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ Each participant executed the proposed amendment. The 
Participants are: BATS Exchange, Inc., BATS-Y Exchange, Inc., 
Chicago Board Options Exchange, Incorporated, Chicago Stock 
Exchange, Inc., EDGA Exchange, Inc. (``EDGA''), EDGX Exchange, Inc. 
(``EDGX''), Financial Industry Regulatory Authority, Inc. 
(``FINRA''), International Securities Exchange, LLC, NASDAQ OMX BX, 
Inc. (``Nasdaq BX''), NASDAQ OMX PHLX, Inc. (``Nasdaq PSX''), Nasdaq 
Stock Market LLC, National Stock Exchange, New York Stock Exchange 
LLC (``NYSE''), NYSE MKT LLC (formerly NYSE Amex, Inc.), and NYSE 
Arca, Inc. (``NYSE Arca'').
    \4\ See Securities Exchange Act Release No. 10787 (May 10, 
1974), 39 FR 17799 (declaring the CTA Plan effective). The CTA Plan, 
pursuant to which markets collect and disseminate last sale price 
information for non-NASDAQ listed securities, is a ``transaction 
reporting plan'' under Rule 601 under the Act, 17 CFR 242.601, and a 
``national market system plan'' under Rule 608 under the Act, 17 CFR 
242.608.
---------------------------------------------------------------------------

I. Rule 608(a)

A. Purpose of the Amendment

    Currently, Section VIII(a) (Responsibility of Exchange 
Participants) of the CTA Plan provides that each Participant will ``(i) 
report all last sale prices relating to transactions in Eligible 
Securities as promptly as possible, (ii) establish and maintain 
collection and reporting procedures and facilities such as to assure 
that under normal conditions not less than 90% of such last sale prices 
will be reported within that period of time (not in excess of one and 
one-half minutes) after the time of execution as may be determined by 
CTA from time to time in light of experience, and (iii) designate as 
``late'' any last sale price not collected and reported in accordance 
with the above-referenced procedures.''
    The amendment proposes to reduce from one-and-one-half minutes to 
10 seconds the maximum amount of time by which each Participant is 
required to report trades. In addition to reducing the time frame, the 
Participants propose to revise the language of the requirement so that 
it requires the Participants to report ``as soon as practicable, but 
not later than 10 seconds,'' after the time of execution of the trade. 
The amendment also proposes to remove the qualifier that called for 
trade reports to meet the time requirement not less than 90 percent of 
the time under normal conditions.
    The Participants note that, during 2013, the Commission approved a 
FINRA rule amendment that modified FINRA's trade reporting rules to 
require that FINRA members report over-the-counter transactions in 
Eligible Securities to FINRA as soon as practicable, but no later than 
10 seconds, following execution.\5\ The FINRA rule does not qualify the 
10-second requirement by providing that one must comply 90 percent of 
the time under normal conditions. No other Participant has a trade 
reporting rule that permits trade reporting more than 10 seconds after 
execution. As a result, shortening the trade reporting time under the 
CTA Plan seems warranted.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 69561 (May 13, 
2013), 78 FR 29190 (May, 17, 2013) (SR-FINRA-2013-013).
---------------------------------------------------------------------------

    In addition, the Participants understand that, contemporaneously 
with the filing of this amendment, the Participants in the UTP Plan 
contemplate submitting a plan amendment that would amend the trade-
reporting requirement under that plan to provide for the same trade-
reporting requirements as the CTA Plan Participants propose under this 
Agreement.

B. Additional Information Required by Rule 608(a)

1. Impact of the Proposed Amendment
    The Participants report the vast majority of trade reports in well 
less than 10 seconds, so that the Plan amendment is not likely to have 
a practical impact on trade reporting.
2. Governing or Constituent Documents
    Not applicable.

[[Page 909]]

3. Implementation of the Amendment
    All of the Participants have manifested their approval of the 
proposed amendment by means of their execution of the Plan amendment. 
The Plan amendment would become operational upon approval by the 
Commission.
4. Development and Implementation Phases
    Not applicable.
5. Analysis of Impact on Competition
    The proposed amendment does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Participants do not believe that the proposed plan 
amendment introduces terms that are unreasonably discriminatory for the 
purposes of Section 11A(c)(1)(D) of the Act.\6\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78k-1(c)(1)(D).
---------------------------------------------------------------------------

6. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, Plan
    Not applicable.
7. Approval by Sponsors in Accordance With Plan
    Under Section IV(b) of the CTA Plan, each Participant must execute 
a written amendment to the CTA Plan before the amendment can become 
effective. The amendment is so executed.
8. Description of Operation of Facility Contemplated by the Proposed 
Amendment
    Not applicable.
9. Terms and Conditions of Access
    Not applicable.
10. Method of Determination and Imposition, and Amount of, Fees and 
Charges
    Not applicable.
11. Method of Frequency of Processor Evaluation
    Not applicable.
12. Dispute Resolution
    Not applicable.

II. Rule 601(a)

A. Equity Securities for Which Transaction Reports Shall Be Required by 
the Plan

    Not applicable.

B. Reporting Requirements

    As a result of the amendment, the CTA Plan would require each 
Participant to report each trade as soon as practicable, but no more 
than 10 seconds from the time of the trade. In addition, each 
Participant would be required to establish and maintain collection and 
reporting procedures and facilities reasonably designed to assure that 
such last sale prices will be reported within not more than 10 seconds 
(rather than the current 90 seconds) following execution, regardless of 
whether they do so 90 percent of the time under normal conditions. 
(Currently, each Participant has 90 seconds to report 90 percent of its 
trades within 10 seconds following execution under normal conditions.)

C. Manner of Collecting, Processing, Sequencing, Making Available and 
Disseminating Last Sale Information

    Not applicable.

D. Manner of Consolidation

    Not applicable.

E. Standards and Methods Ensuring Promptness, Accuracy and Completeness 
of Transaction Reports

    The amendment will support the prompt reporting of transaction 
reports by reducing from 90 seconds to 10 seconds the maximum amount of 
time by which each Participant must report trades, subject to the 
Participants' obligation to report trades as soon as practicable.

F. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination

    Not applicable.

G. Terms of Access to Transaction Reports

    Not applicable.

H. Identification of Marketplace of Execution

    Not applicable.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
amendments are consistent with the Act. Comments may be submitted by 
any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CTA-2014-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CTA-2014-04. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the Amendments that are filed with 
the Commission, and all written communications relating to the 
Amendments between the Commission and any person, other than those that 
may be withheld from the public in accordance with the provisions of 5 
U.S.C. 552, will be available for Web site viewing and printing in the 
Commission's Public Reference Room, 100 F Street NE., Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the Amendments also will be available for 
inspection and copying at the principal office of the CTA. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CTA-2014-04 and should be 
submitted on or before January 28, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(27).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2014-30975 Filed 1-6-15; 8:45 am]
BILLING CODE 8011-01-P